SEC sues crypto company that has ceased operations: Agreement reached
The US Securities and Exchange Commission (SEC) has filed a lawsuit against Galois Capital, one of the major crypto-focused investment and consulting companies of the past. While it is noteworthy that the lawsuit was filed approximately 1.5 years after the company ceased operations, the parties have already reached an agreement...
Galois Capital, a crypto-focused fund and consulting company that ceased operations in February of last year, was sued by the SEC. It was stated that the main reason for the lawsuit filed by the institution was that a portion of its customer funds were held on the platforms of some “unqualified companies” such as FTX.
Galois, known for its focus on high-risk crypto projects such as Terra LUNA and UST, had also lost more than $40 million in the FTX bankruptcy. It was stated that the company had also sold each share of its bankruptcy rights in FTX for 16 cents at one time.
It will only pay $225,000: So why?
The company later stated that it would reimburse its customers who suffered losses. However, the SEC's accusations stated that Galois deceived his investors in this regard as well.
Again, the SEC's statement noted that the company had reached an agreement with the institution to pay a $225,000 fine.
Here, despite a $40 million loss, the fact that only a $225,000 fine was imposed actually shows that the SEC attributed the losses to an external factor such as FTX.
In other words, the penalty was imposed because Galois violated his custody obligations.
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